Tax Tables
Vehicles
Petrol and Diesel Car Benefits System
The taxable benefit is calculated as a percentage of the car's list price. The calculation begins with the car's CO2 emissions, in grams per kilometre. Then deduct 140 and divide the result by 5. Round down (4.9 = 4) and then add 15 (petrol) or 18 (diesel). The result is the taxable percentage. Normal minimum rates are petrol 15%, diesel 18% and the maximum rate for petrol and diesel is 35%. Special rules apply to very low emission diesel and alternative fuel cars.
Chargeable on employees earning £8,500 or over (including benefits) and directors.
The list price relates to the day before first registration and includes accessories. The price is subject to an upper limit of £80,000.
The list price is reduced by the employee's capital contribution when the car is first made available, subject to a maximum deduction of £5,000.
Van restricted private use condition not met, van benefit £3,000, fuel £500.
Payments by employees for private use may reduce the above benefits.
HM Revenue & Customs Mileage Rates
Car: Approved rates for employees using their own cars for business are 40p per mile for the first 10,000 miles and 25p per mile thereafter. Income tax and NICs may be due on higher rates and tax relief on lower rates.
Fuel: Advisory rates for employee private mileage reimbursement or employer reimbursement of business mileage are published by HM Revenue and Customs from time to time.
Car Fuel Benefit
Where the cost of all fuel for private use is borne by the employee, the fuel benefit is nil. Otherwise, the taxable benefit is calulated as the car benefit percentage (see above) of £14,400. VAT is payable by the business by reference to the CO2 emissions (rounded down to the next multiple of 5) as follows:
VAT on scale charge for quarters commencing on or after 1 May 2007
| C02 in g/km |
VAT on charge |
CO2 in g/km | VAT on charge |
CO2 in g/km | VAT on charge |
| Up to 140 | £27.11 | 175 | £39.91 | 210 | £52.57 |
| 145 | £29.04 | 180 | £41.70 | 215 | £54.36 |
| 150 | £30.83 | 185 | £43.49 | 220 | £56.30 |
| 155 | £32.62 | 190 | £45.28 | 225 | £58.09 |
| 160 | £34.40 | 195 | £47.21 | 230 | £59.87 |
| 165 | £36.19 | 200 | £49.00 | 235 | £61.66 |
| 170 | £38.13 | 205 | £50.79 | 240 or over | £63.45 |
